NBA players to take 25% pay cut starting May 15

A person with knowledge of the decision says NBA players will see 25% of their paychecks taken out starting May 15.

The decision was finalized Friday in a board of governors meeting and was done in concert with the National Basketball Players Association, according to the person who spoke to The Associated Press on condition of anonymity because the deal had not yet been announced publicly.

Players will be paid in full on May 1. The cutback in salary has been expected for some time in response to the NBA’s shutdown caused by the coronavirus pandemic.

The reduction in pay is in anticipation of what the Collective Bargaining Agreement between the league and its players describes as a “Force Majeure Event” — the legal term for unforeseeable circumstances, such as an epidemic or pandemic. Per the CBA, players could lose 1.08% of their annual salary for each game that is canceled.

By taking some money out now, the hit the players take later if games are canceled would be lessened.